Omega Flex Inc. Common Stock (OFLX)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for small industrial businesses with durable niches, clean balance sheets, and a price that leaves room for error. Omega Flex is a focused maker of flexible gas piping, fittings, and related products, with only 172 employees. The niche may create some customer stickiness, but the record shows weakening demand and little evidence of pricing power. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $24.1M and net income was $2.7M; in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $25.5M and net income was $4.2M. For the full fiscal year 2025, revenue was $98.3M and net income was $14.8M, compared with fiscal 2024 revenue of $101.7M and net income of $18.0M, and fiscal 2023 revenue of $111.5M and net income of $20.8M. That is a shrinking business, consistent with the FairStock Lynch category: SLOW GROWER - Shrinking, with profit down -5.7% a year over five years and revenue -1.5%. The balance sheet is a real strength: debt/equity is 0.06, and the Altman Z-Score is 10.52. Trailing free cash flow is $10.8M, a 4.1% FCF yield on the $264.8M market cap, while the dividend yield is 5.36%. But returns are only moderate: ROE is 13.97% and ROCE is 8.31%. At the 2026-10-13 close of $26.23, FairStock calculates a P/E of 22.42, P/B of 3.23, EV/EBITDA of 14.87, and a Graham Number of $14.63, a -79.29% margin of safety. A FairStock Score of 43/100 reinforces caution. Good small business, but not cheap on these numbers.

In plain English: Omega Flex makes flexible metal hoses and fittings used for gas piping in homes, businesses, and medical buildings. The business is not broken, since it has little debt and pays a high dividend, but sales and profits have been falling. At $26.23, the stock looks expensive compared with its recent profits and asset value, so it is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer